ufacturer companies is being shown during the Policy Committee. In so doing it has undertaken Convention. More than nine million pieces of literature have been prepared and sent out through member companies and 168 advertisements of manufacturers have been published during the first six months of 1921, carrying our message to millions through the circulation of 91 publications, including national and popular magazines, newspapers, college magazines, business and trade journals, and through reproduction by member companies in hundreds of local newspapers. The National Sections Changing economic conditions continually present opportunity for constructive work by the National Commercial Section. The unusual conditions of the last few months, which have given the central stations opportunity to catch up with the demands, exceeding their capacity, made upon them during the war and immediately afterward, have offered an exceptional field of study for this Section, which has outlined and will present to the Convention a comprehensive and definite plan for building up industrial and domestic demands for service with the return of normal business conditions. One national activity of the Commercial Section worthy of a prominent place upon the Association program is the National Exhibit of the Lighting Sales Bureau, which has been shown in many large cities and which should be carried into every community in the United States, bearing with it the message of efficient lighting in domestic and industrial life. During the last year the Technical National Section has faced complex and intricate problems in connection with the immediate demands upon the industry and in paving the way for the handling of the vast program of construction expected in the immediate future. In this connection the Section has accomplished much toward the solution of the inductive interference problem, in connection with standardization and in the field of safety rules. It has worked closely with engineering organizations and with the Bureau of Standards, and its accomplishments have been acclaimed by the entire membership. The Accounting National Section has co-operated with the Committee of the National Association of Railway and Utilities Commissioners in the formation of a uniform classification of accounts, and has completed the N.E.L.A. Uniform Classification of Accounts, which has met with the approval of the National Executive Committee and the Public to develop accounting structures of a character which will make available complete and uniform statistics of the industry. Nation-wide interest has been developed by the Public Relations National Section in the program of co-operative endeavor now well under way, which has assembled around the conference table representatives of every branch of the industry, the consuming public, the investor and the regulator, so that a better understanding of the nation's electrical demands and resources and the methods of meeting those demands and of developing those resources may be had. While the work of this Section is in reality well under way, from another and broader viewpoint it has hardly been started, so great a field of usefulness is open to it. Every possible agency should be used during the coming year to expand this work, and the co-operation of all committees and members of the Association is needed, that the work of this Section may bring as nearly as possible one hundred per cent of its potential benefits. Manufacturers, contractor-dealers and jobbers have been convinced of the importance of the Public Relations National Section's work and are lending every assistance in furthering it. The electric light and power industry representatives must meet them more than halfway, and that means that every individual member company must do its part in carrying on this work. Upbuilding the Industry Under the guidance of President Martin J. Insull, to whose vision and driving power are due so many of the accomplishments of the year, the Association has taken the lead in a general movement for the upbuilding of the industry, and it is a fact that the entire electrical industry is working harmoniously to secure the good-will of the public and the financial assistance of large and small investors, so that the light and power companies of the country may secure the four and a half billion dollars necessary for extension and development during the next five years if the public is to be adequately served. This additional investment will call for the additional expenditure of approximately twice that amount for the wiring of homes, factories and business. houses, and for the purchase of machinery, equipment and appliances. The resulting total of $13,000,000,000 to be expended in the electrical industry in the brief period of five years is dependent entirely upon the industry's attaining success in its efforts. to build better public understanding. After only a few months of intensive work, a change in the attitude of the public, public press and magazines already is noticeable, and to a considerable extent this is due to the co-operation and assistance rendered by the electrical press, which has been widely quoted in its support of the movement, and also to State committees on public utility information activities. Such committees exist in sixteen States of the Union and similar work is being carried on in other States through the influence of individual electric light and power companies and through other public utilities. The effective work of these State committees has been due almost entirely to local initiative, but the N.E.L.A. has fostered that work in every possible way and, in cooperation with other national utility associations, is endeavoring to organize similar committees in many other States. This epitomizes the general work of the Association during the year. Its narration is as simple as the work is difficult, but it is a matter of pride for the staff at Headquarters to have had a share in it. Our eyes must now be fixed on the future, which is pregnant with great possibilities. Not only must we complete the tasks already undertaken, but we must pursue others just as energetically and just as successfully as those we have accomplished. The problems of public relationship and of financing must still dominate our thoughts and actions, for not until these questions are mastered can the industry feel at ease and concentrate its attention on purely electrical matters and on the detailed perfec tion of its service. If there is one thing we lack above all else, it is implicit faith in our product and a larger vision of its possibilities. We need a revival of the spirit which animated the pioneers, a spirit which saw no obstacles, no hardships, no discouragements, no failures, but only the bright prospects of homes and industries, villages and cities, transformed by the miraculous power of electricity, and which was content with the joy of accomplishment. It may be true that an old order is passing away. It had its faults, its limitations, and it is easy for us to see them; but it had its very great achievements, and its immortal names which have exercised a most potent effect on the industry for years. One of the greatest charms of our business is that most of these pioneers still live, and that the young can keep up the enthusiasm of the old while the elders can do much to set old heads on young shoulders. If ever there was an industry in which the dreams of its pioneers and the visions of its young men blend and lead the van in the march of progress, it is the electrical, and certainly none on this earth offers greater inspiration. If we will but throw our full energy into the task that it is our proud privilege to call ours, these dreams and visions will not fade like the "empty fabrics" and "insubstantial pageants" of the poet, but be translated into the everyday facts of a better civilization. JOHN A. BRITTON: It seems to me, Mr. President, rather a pity that the constructive and inspiring addresses of yourself and Mr. Aylesworth should be lost by the members who are not present here today, and I move you, sir, in order that these addresses may reach the masses of the people interested, that both addresses be printed and circulated among the member companies and the geographical sections before publication in the Proceedings. SIDNEY Z. MITCHELL: I second the motion. (The motion was duly put to vote and carried.) THE PRESIDENT: On behalf of myself and Mr. Aylesworth, I wish to thank you. The President read a telegram from Mr. Harry T. Edgar, president of the Mississippi River Power Company, extending an invitation to the members of the National Electric Light Association to visit the water power developments of the company at Keokuk, Iowa. Announcement was made of the railroad certificates, The Derby Dinner and the dinner of the Meter Committee. THE PRESIDENT: There is a change in our program this morning, and the Report of the Membership Committee, which is the last number on the program for this morning, will be postponed until tomorrow, and the report of the Wiring Committee will be made this morning. MR. AYLESWORTH: I wish to call your attention to the fact that we are to have several honored guests at our meeting who will address us this week, and I suggest to you that you make every effort to hear them. On Wednesday we will have an address by the Honorable James A. Perry, president of the National Association of Railway and Utilities Commissioners, of Atlanta, who will address us on "The Public's Interest in Utility Development." The Honorable E. I. Lewis, commissioner, Interstate Commerce Commission, formerly chairman of the Indiana Public Service Commission, of Indianapolis, will address us on the topic, "Current Aspects. of Utility Regulation." We will also have an address by the Honorable William M. Smith, commissioner, Michigan Public Utilities Commission, on the subject, "The Public and the Electric Light and Power Company." We will also be addressed by Mr. Harford Powel, Jr., editor of Collier's, The National Weekly, on the subject, "Contact with People." Mr. Powel will give us an interesting talk on that subject. On Wednesday afternoon, at the Public Relations National Section Session, we will have an address by Mr. Edward N. Hurley, president of the Hurley Machine Company, and formerly Chairman of the United States Shipping Board and Federal Trade Commission, on the subject, "Do We Know Our Customers?" I trust that the members will bear in mind these various addresses, and be present to hear them when they are delivered. THE PRESIDENT: The next business is the address of the Chairman of the Accounting National Section, Mr. J. C. Van Duyne, of the Brooklyn Edison Company. I am sure that we are glad to have Mr. Van Duyne with us at this Convention, and I am sure that you will join with me in rejoicing in the fact that he has regained his health, which was seriously impaired during this administrative year. Address of the Chairman of the Accounting National Section J. C. VAN DUYNE: Mr. President and Gentlemen: Inasmuch as the Accounting Section has been allotted a place on this morning's program, it seems appropriate that one of its very important undertakings, among others, be brought forward at this time, in view of its recent completion, for one thing, and also because it is a subject that is of general application. This is the Classification of Accounts, which has recently been printed and is ready for distribution to member companies at this time. The Constitution of the Accounting Section states. and emphasizes as an object of the Section that it is to work for the establishment of a single uniform system of accounts by concerted action-of the various regulating bodies, and this Section. It is, of course, a truism to say that an accounting system must show the facts of a business, by recording the transactions, or fiscal history of the enterprise; and it must be historical, since accounting can only follow some physical fact, translating that fact into some term or terms of value. With the growth and development of the electric light and power industry the accounting processes have been naturally developed, too, from very simple beginnings, into more or less elaborate systems of accounts-from, for instance, the stage in years gone by when a single account with some such title as "Construction Account" carried all the plant and property of the company, regardless of its character (and equally simple operating accounts), to the point where property and other accounts in present-day practice must show in minute detail what the financial status of the business is. Uniformity of accounting, through the interchange of information at these conventions and other studies. by executors and accountants, had already attained a considerable degree of general application by the lighting utilities prior to 1914, when the Standard Classification of Accounts of this Association was adopted with the approval of the Executive Committee and the Public Policy Committee. That classification provided a basis upon which all companies could standardize their accounting systems, and many companies took advantage of the opportunity. By this time several of the States had prescribed classifications of accounts for electric and other utilities, and these classifications varied in a number of particulars, and companies operating in more than one State, as some did, were obliged to not only conform to the State Classifications, but, for purposes of comparisons where the variations occurred, to keep additional accounts for their own information. This was obviously burdensome. To make a long story short, the Accounting Section, after the 1914 classification was adopted, made a painstaking and detailed comparison of the account-titles and text between our classification and those prescribed by the various State Commissions— a laborious but illuminating job, that impressed Commission accountants and statisticians with whom the Committee communicated after completing the work. Then began the series of conferences between representatives of the Accounting Section and of the Association of Railway and Utilities Commissioners, extending over a period of several years, and later of the American Gas Association, which has resulted in the compilation of the revised Standard Classification of Accounts for Electric Corporations, now in print at this Convention. It is not necessary here to go into details of the harmonization of varying views as to both principles and details; suffice it to say that the classification the Committee has produced, and that which the Association of Railway and Utilities Commissioners has recommended for adoption by State Commissions, are so nearly identical in essential particulars that the variations are relatively negligible. The Commission's Classification contains provisions regulating in character, which are not necessary in our classification, and there are a few other differences. But the prevailing thought here is that we have made substantial progress in the direction of standardization and, in doing so, have got a good product; it has the background of approval by the Executive and Public Policy Committees, and will repay the careful study we feel sure it will receive from our members. Now to what use are we going to put it? Well, we have recently received word from a company in Virginia that the Commission in that State has adopted the Commissioners' Classification without modification-note that; because except for the differences noted above, a classification agreeing with ours is now provided for Virginia utilities. In Michigan the Gas Classification, similar to ours, because the American Gas Associations Committee worked with ours and, standardized with us, has been adopted, and it is not improbable that the Electric Classification will also be adopted. Massachusetts utilities will be working under a classification shortly, in most respects similar to ours, and we may hope for similar action elsewhere. I have simply stated these facts, not to burden the program at this Session, but to lead up to the point of making an appeal to those companies and their representatives in the different States where Commissions may revise their standard classifications as prescribed for utilities, or where Commssions who have not yet adopted the classifications may hold hearings for the adoption of a classification for utilities, to take an active interest in these matters. In those instances and in those States where this occurs my appeal is for the members of this Association, both executives and accountants, to get behind this classification which has been produced for the Committee as a result of a great many years of very industrious labor, and which we believe is a first-class classification and suited to the requirements of any company and any commission classification, no matter where it may be, so that I am asking that the members of the companies in those fields where new specifications are about to be promulgated get behind this classification of ours and give it all the support and all the emphasis that is possible. It is important that we get behind it and give it the background of our assistance, because it merits any effort that we may spend upon it; and I am simply leading up to this appeal so that where classifications are about to be promulgated by a State Commission that we get behind our classification and push it forward and advocate it in every way possible. THE PRESIDENT: The next address is by one of our very active members, who has been doing a great deal of work this past year; in fact, the only criticism I have heard of him is that he has done too much work. I now call upon Mr. M. S. Seelman, Jr., of the Brooklyn Edison Company, to speak to us as Chairman of the Commercial National Section. Address of the Chairman of the Commercial National Section M. S. SEELMAN, JR.: To begin with, it seems appropriate at this time to emphasize the broad view of the importance of their function and the deep significance of the word Commercial held by the men who for some years have been active in the Commercial Section and to respectfully present to presidents, vice-presidents and general managers the conception that at this stage of central station development, if we are to get the most and the best out of our properties, they must think along broad commercial lines, encouraging and developing the commercial elements of their organizations, giving them the fullest possible scope in all dealings with customers and all relations between public and company. It has been apparent for some time that the world. is in an unstable and turbulent condition and that methods of handling our business have not resolved themselves to the standard lines of pre-war days, nor is it probable that the old routine will ever come back. Also, our companies are growing larger day by day, and the small electric light company of the past is gradually becoming the great electric supply corporation of the present and future. Our practices and forms of organization in the past served our purposes well, but changed conditions necessitate revised methods, and new problems require other methods of solution. In many if not most situations, not so many years ago, the commercial activities were handled by a few men, whose duties involved not only the signing of applications for service, but collecting bills, adjusting complaints and sometimes reading meters. Rapid changes took place, the various activities of our companies were allocated to different departments, until at the present time we have highly specialized forms of organizations. As we consider, during these days of unrest, possible developments of the future, is it not wise to study our present forms of organization and see if they are such as to meet these changed conditions and allow for the tremendous expansion and wide growth which we anticipate will be ours within the next decade? Traffic; Plant; Commercial Engineering; We have an excellent example of organization in the present plan of the Telephone Company, wherein three principal departments exist: first, the traffic; second, the plant; third, the commercial department, the last named taking care of all public relations, including advertising, applications for service, collections and adjustments of accounts. In the larger central station companies within recent years the need for increase in the scope of commercial departments has been felt and some departure from the old-line system of organization has taken place. Strictly speaking, the commercial side of a central station has to do with those subjects relating to the handling of the company's business with the public, and there should be as few representatives of the company as possible between the public and it on all company questions, and those few trained to the commercial attitude. To this end the commercial organization of the present day seems. best fitted to include in its functions not only the getting of business and the handling of the advertising, which is so important an adjunct, but also the making of all street lighting contracts, the campaign sale of company securities to the public, wiring and service inspection work, which brings the employe in contact with the applicant and the contractor, the handling of complaints, the dealing with inquiries as to delayed service and incorrect accounts, including the making of necessary adjustments and, last but not least, the engineering of co-operation between the company and other elements in the electrical business and the handling of all publicity relations. The General Commercial Manager and His Department The man in charge of this part of the work should no longer be called General Sales Agent or General Sales Manager. He should be the General Commercial Manager, capable of organizing and conducting a department that cannot only originate campaigns and produce profitable business, increasing the net. as well as the gross, but so trained and directed that all public relations are safe in its hands and it can be trusted to develop and conserve the public goodwill. The head of such a department should be a principal part of the executive direction of the Company, whose advice and assistance is sought on all matters connected with rates, customer questions, relations and transactions with public service commissions and city and State officials; in fact, whenever there may be a problem or a mission requiring knowledge, judgment, diplomacy and the capacity to "deliver the goods" up to a high percentage. The central station that hasn't got that kind of man as General Commercial Manager at this day and date needs one. The station that has one can't give him too much to do or too big a place in its organization. This, gentlemen, is the conception we hold of the function and importance of the commercial department, and we are naturally conducting the Commercial Section of this, your organization, so far as possible, along the lines of this conception. Commercial Section's Work This Year And this leads me to the second point, the importance of which we would like to have you realize, and that is the extent and character of the work the Commercial Section has done this year and how you can use that work to the very great advantage of your companies during the coming year. Those who attend the sessions of the Commercial Section during the next few days, or carefully study the reports made by its committees, will find that they can be used as the basis for and point the way to the entire coming year's commercial work in practically every one of its phases. Unless you have a perfect organization, perfectly conducted, they will suggest possible improvements and indicate methods of keeping that organization busy on profitable work. It is impossible in the brief time remaining me to review the year's work of the Commercial Section. Only a few of the high spots may be touched. The program and the sessions will furnish the rest. The work of the Section is accomplished through five bureaus, each organized into a number of divisions, and through several independent committees. Lighting Sales Bureau Under the auspices of the Lighting Sales Bureau a campaign has been conducted this year to convince the manufacturers of the country that by means of increasing and properly engineering their lighting equipments they can increase the productiveness of their factories to an extent out of all proportion to the expenditure involved. Incidentally, in so doing they will materially increase central station revenue, with little or no additional investment cost. The detail of the operation of this successful campaign, so far, will be found in the reports. I wish to emphasize the high-grade nature of this propaganda, the skill with which it has been conducted and its subtle effect in inducing the adoption of higher standards, not alone in industrial lighting, but in the lighting of offices, stores, homes and streets. It also gives me pleasure to point to this campaign as a notable illustration of the very finest methods of cooperation in the industry. At a time of difficulty in Association finances the lamp manufacturers came to the front and financed this movement in no penurious way, besides giving freely the services of the best men on their staffs. In nearly every city where demonstrations have been placed their installation and operation have been the combined work of central station, jobbers, contractor-dealers, electrical clubs and frequently of local boards of trade and chambers of commerce. The advantages of such juxtaposition are obvious. The Lighting Sales Bureau is very strongly of the opinion that the same opportunity to improve lighting conditions and increase central station income that has been shown by this industrial campaign exists in the field of home lighting, and we have accordingly prepared a home-lighting demonstration for your intensive study at this Convention. In one part of this exhibit, at this hotel, is a living-room and a dining-room where lighting effects rather than fixtures are shown. Here we demonstrate the expressiveness of light-the idea being that light is a medium which can be handled as the decorator handles his media, and that by varying the distribution and tints of light we may greatly alter the mood of a room to suit the mood of the individual or the requirements of the occasion. My time permits me to give you just the merest suggestion of the significance of this exhibit. See it yourself. The members of the Lighting Sales Bureau who devised and constructed it have been successful in placing from five to ten times as many outlets in modern homes as are found in average homes today, and they are satisfied that all that is required to make a notable increase in such equipment general is to educate the public along the lines indicated in this demonstration. The Commercial Section in making this demonstration feels that it has opened up another avenue of great usefulness to N.E.L.A. members. |